BREXIT will not ruin the UK economically and the current slump in the pound is entirely driven by fear, an expert has warned.

He added: "Investors will listen closely to PM May’s speech for clues to whether the UK will be proceeding with either a ‘hard’ or ‘soft’ stance when exiting the European Union.

"A ‘hard’ approach would see the UK losing access to the EU, regaining control of immigration and reverting to WTO trade rules.

"A ‘soft’ approach would see the UK retaining a close relationship with the EU while accepting the 'four pillars' of free movement of goods, services, capital and labour, an outcome that PM May has previously said is against the country’s wishes and unacceptable.

"PM May will have been pleased by a recent report by Fitch that said UK companies will continue to be resilient, even if the UK opts for a ‘hard Brexit."

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Fitch which originally downgraded the UK to ‘AA’ from ‘AA+ following the referendum says there is light at the end of the tunnel.

And Alex Griffiths, its Head of Natural Resources and Commodities, said Brexit should not be blamed for all economic ills.

He added "Where Brexit will be the bogeyman that causes everything to fall over.’

"A long period of uncertainty will be very bad for corporates.

"As soon as you look at trade, and global supply chains, for these companies there is going to be a big impact if we have a hard Brexit will tariffs going up.

"There will be a lot of shuffling around to do, but ultimately the companies will cope.